Investing.com - Asian stock markets were broadly higher on Wednesday, as market players looked ahead to a key German court ruling on whether the euro zone's permanent bailout fund is compatible with German law later in the day.
Investors were also focusing on the Federal Reserve’s two-day policy-setting meeting, which begins later Wednesday, for more clarity on the central bank’s monetary policy.
During late Asian trade, Hong Kong's Hang Seng Index rose 1.1%, Australia’s ASX/200 Index ended up 0.8%, while Japan’s Nikkei 225 Index rallied 1.7%.
Market sentiment improved ahead of a closely-watched German court ruling scheduled for later Wednesday, on the constitutionality of the European Stability Mechanism.
Germany’s approval will be necessary in order to implement the European Central Bank’s bond purchasing program announced last week, dubbed Outright Monetary Transactions.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, amid fresh speculation that the U.S. central bank may announce a third round of bond purchases, or quantitative easing, to boost growth.
Market expectations of a QE3 announcement this week increased after last Friday’s weaker-than-expected jobs report.
In Tokyo, the Nikkei ended at the highest level in two weeks, in part due to some short covering due to pre-settlement trading of futures.
Shares in heavy machinery makers were higher after data showed that core machinery orders rose 4.6% in July, far better than market expectations for a gain of 2.0%.
Shares in industrial robot maker Fanuc climbed 2.2%, while Denso shares added 2%.
Exporters also contributed to gains, amid optimism policymakers around the world will introduce further stimulus measures to boost sluggish global growth.
Shares in Canon jumped 2.55%, Sony rose 1.3%, while automakers Toyota and Honda rose 0.95% and 1.55% respectively.
Elsewhere, in Hong Kong, the Hang Seng advanced on the back of bullish comments made by Chinese Premier Wen Jiabao on Tuesday. Speaking at the World Economic Forum's meeting in Tianjin, Wen vowed his nation would meet its official target of 7.5% economic growth for 2012.
The remarks fuelled expectations policymakers in Beijing will roll out more stimulus measures to boost growth in the world's second largest economy. China’s government last week approved a USD157 billion infrastructure spending program to help stimulate the economy.
Chinese financials were mostly higher, with China Construction Bank shares trading up 1.4%, Industrial and Commercial Bank of China gaining 1.5% and Bank of China adding 1.1%.
Meanwhile, in Australia, the benchmark ASX/200 Index edged higher, as gains in financials and miners boosted the market.
The big four banks all rose, with Australia's number 1 lender, the Commonwealth Bank of Australia gaining the most, up 1.75%.
Shares in mining heavyweights BHP Billiton and Rio Tinto each traded 0.95% higher, while iron ore maker Fortescue Metals jumped 3% on the back of rising iron ore prices.
Looking ahead, European stock market futures pointed to a mildly higher open. The EURO STOXX 50 futures pointed to a gain of 0.35% at the open, France’s CAC 40 futures added 0.45%, London’s FTSE 100 futures rose 0.3%, while Germany's DAX futures pointed to a rise of 0.5% at the open.
Also Wednesday, general elections are being held in the Netherlands, amid political tension over the country’s role in the euro zone bailout.
Investors were also focusing on the Federal Reserve’s two-day policy-setting meeting, which begins later Wednesday, for more clarity on the central bank’s monetary policy.
During late Asian trade, Hong Kong's Hang Seng Index rose 1.1%, Australia’s ASX/200 Index ended up 0.8%, while Japan’s Nikkei 225 Index rallied 1.7%.
Market sentiment improved ahead of a closely-watched German court ruling scheduled for later Wednesday, on the constitutionality of the European Stability Mechanism.
Germany’s approval will be necessary in order to implement the European Central Bank’s bond purchasing program announced last week, dubbed Outright Monetary Transactions.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, amid fresh speculation that the U.S. central bank may announce a third round of bond purchases, or quantitative easing, to boost growth.
Market expectations of a QE3 announcement this week increased after last Friday’s weaker-than-expected jobs report.
In Tokyo, the Nikkei ended at the highest level in two weeks, in part due to some short covering due to pre-settlement trading of futures.
Shares in heavy machinery makers were higher after data showed that core machinery orders rose 4.6% in July, far better than market expectations for a gain of 2.0%.
Shares in industrial robot maker Fanuc climbed 2.2%, while Denso shares added 2%.
Exporters also contributed to gains, amid optimism policymakers around the world will introduce further stimulus measures to boost sluggish global growth.
Shares in Canon jumped 2.55%, Sony rose 1.3%, while automakers Toyota and Honda rose 0.95% and 1.55% respectively.
Elsewhere, in Hong Kong, the Hang Seng advanced on the back of bullish comments made by Chinese Premier Wen Jiabao on Tuesday. Speaking at the World Economic Forum's meeting in Tianjin, Wen vowed his nation would meet its official target of 7.5% economic growth for 2012.
The remarks fuelled expectations policymakers in Beijing will roll out more stimulus measures to boost growth in the world's second largest economy. China’s government last week approved a USD157 billion infrastructure spending program to help stimulate the economy.
Chinese financials were mostly higher, with China Construction Bank shares trading up 1.4%, Industrial and Commercial Bank of China gaining 1.5% and Bank of China adding 1.1%.
Meanwhile, in Australia, the benchmark ASX/200 Index edged higher, as gains in financials and miners boosted the market.
The big four banks all rose, with Australia's number 1 lender, the Commonwealth Bank of Australia gaining the most, up 1.75%.
Shares in mining heavyweights BHP Billiton and Rio Tinto each traded 0.95% higher, while iron ore maker Fortescue Metals jumped 3% on the back of rising iron ore prices.
Looking ahead, European stock market futures pointed to a mildly higher open. The EURO STOXX 50 futures pointed to a gain of 0.35% at the open, France’s CAC 40 futures added 0.45%, London’s FTSE 100 futures rose 0.3%, while Germany's DAX futures pointed to a rise of 0.5% at the open.
Also Wednesday, general elections are being held in the Netherlands, amid political tension over the country’s role in the euro zone bailout.